11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
Renewable energy supply chain company Eco-Energy has started operations at its newly built renewable feedstock distribution facility in Newton, Iowa, according to a news release on Tuesday October 15.
The facility will allow Marathon Petroleum Company to aggregate renewable feedstocks, such as distillers’ corn oil, soybean oil, animal fats and used cooking oil, from across Iowa for outbound distribution to the growing renewable diesel (RD) space.
The Newton site is equipped with 32 tank car offload spots, 1.2 million gallons of dedicated feedstock storage, and high-speed truck offloading and rail loading capability.
The facility will be accessible by the Iowa Interstate Railroad, ensuring that outbound product can be directly distributed by all North American Class I railroads.
US RD capacity, with its lower carbon intensity score compared with biodiesel, is expected to be robust in the coming years.
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